John Corey replied: I would pick up a copy of Wealth Protection by William Bronchick. It is an inexpensive book that provides a great introduction to the topic. Note that it is very clearly stated that trusts do not provide liability protection. Many investors misunderstand trusts. Bronchick is a lawyer and a RE investor. The book costs less than $20 on Amazon and it is in many of the larger bookstores (the ones with a RE section).

I would use a trust for privacy, but I would also have a corporation. I had a question, for tax advice i’d always ask an accountant, but was seeing if you would know. someone said a S corporation is better for short term investing, buying and selling, but a LLC is better for long term properties like rentals? I didn’t know is thats true or not.

The S-Corp and LLC are similar in that the income flows through to the owner/member. They pay taxes at their normal rates.

I believe there is a difference in how the S-Corp and LLC are treated when it comes to certain allowed expenses or pension contributions.

To really get the facts I would suggest an accountant. You also have to check the state laws concerning an LLC as there are differences that could be more fundamental to the decision.